Understanding the FMCSA’s Final Rule on ELDs An Overview of Electronic Logging Devices (ELDs) and Compliance for Fleets

Vik Sridhar, Solutions Engineer, HOS Expert February 2016 Introduction In December 2015, the Federal Motor Carrier Safety Administration (FMCSA) released the fnal ruling requiring the use of electronic logging devices (ELDs) for the commercial truck and industries. The fnal rule was implemented to improve road safety, strengthen compliance, and protect commercial drivers. To assist feets in complying with the new regulations, Geotab has prepared this overview of the changes in the new regulations, including an electronic logging history and a comparison of the changes in the different rulings.

This paper addresses these important questions:

• What is an ELD?

• Who does the new ELD rule impact?

• What is the timeframe for compliance?

• What should motor carriers do to comply?

• What are the benefts of ELDs?

• How can Geotab help with HOS/DVIR compliance?

Understanding the FMCSA’s Final Rule on ELDs | 2 What is an ELD? ELD = Electronic Logging Device

An electronic logging device (ELD) is a device that attaches to a commercial motor vehicle (CMV) to synchronize with the engine and record Hours of Service (HOS).1

As defned by the Federal Motor Carrier Safety Administration, a commercial motor vehicle (CMV) is a self- propelled or towed motor vehicle used on a highway for interstate commerce, transporting passengers or property, and meeting certain criteria for weight and design or use.2

The ELD facilitates considerably more accurate recording of all driver activity by providing “snapshots” of the vehicle’s location throughout the driver’s day.1 ELDs automatically record driving time and monitor information such as location, engine hours, vehicle movement, and miles driven.

Record Hours of Service (HOS) logs

Based on Report location via GPS proposed regulations, here are a few things you can expect an Read from the vehicle: ELD to do: ignition/power status, motion status, mileage and engine hours

Report on any malfunctions and tampering detected

Who does the new ELD rule impact? Essentially all CMV carriers that operate across state lines will be impacted.

Any driver who maintains 8 or more days worth of duty status logs, out of 30 days, will require an ELD. Exemptions: 1. Driveaway-towaway operations are not required to use an ELD, provided the vehicle driven is part of the shipment; and

2. ELDs are not required on CMVs older than model year 2000.

3. Drivers who use paper RODS for not more than 8 days during any 30 day period.

Understanding the FMCSA’s Final Rule on ELDs | 3 What is the timeframe for compliance? Motor carriers using paper logs are required to have ELDs installed and in use by December 2017. Fleets using AOBRD devices must be using certifed, registered ELDs by December 2019.

ELD Timeline

March 2014 December 10, 2015 December 18, 2017 December 16, 2019 FMCSA releases FMCSA publishes Drivers using Drivers using AOBRD Proposal Final Ruling paper logs must devices must switch switch to ELDs to ELDs

PHASE PHASE PHASE 1 2 3

Awareness Phased-In Full and Transition Compliance Compliance February 16, 2016 – December 18, 2017– December 16, 2019 December 18, 2017 December 16, 2019

Phase 1: Awareness and Transition Phase The Awareness and Transition Phase lasts two years from the publication of the ELD rule (February 16, 2016 to December 18, 2017).8

Motor carriers and drivers subject to the rule can use any of the following for Records of Duty Status (RODS):8

• Paper logs • Logging software • AOBRD (Automatic On Board Recording Device) • ELDs

Phase 2: Phased-In Compliance Phase The Phased-In Compliance Phase refers to the two-year period from the Compliance Date to the Full Compliance Phase (four years following the ELD rule publication), December 18, 2017 to December 16, 2019.8

Motor carriers and drivers subject to the rule can use:

• AOBRDs that were installed prior to December 18, 2017. • ELD

Understanding the FMCSA’s Final Rule on ELDs | 4 Phase 3: Full Compliance Phase After December 16, 2019, all drivers and carriers subject to the rule must use certifed, registered ELDs that comply with requirements of the ELD regulations.8

The FMCSA predicts that approximately 3.1 million Commercial Motor Vehicles (CMV) and 3.4 million drivers will be affected by this ruling.4

What should motor carriers do to comply? The ELD ruling from the Federal Motor Carrier Safety Administration (FMCSA) will have a major impact on the industry.

As a motor carrier you will have to think about:

1 CostCost fforor new ELDs

2 AAutomaticutomatic On-BoardOn-Board Recocordingrding Device ((AOBRD)AOBRD) rereplacementplacement cocostst

3 CCMVMV driver training

4 CComplianceompliance monitoring

Motor carriers who are affected should begin evaluating and selecting ELDs now so they can have them installed and all the drivers trained before the compliance deadline. The FMCSA provides an “ELD Checklist for Carriers” on their website which outlines the different actions that carriers should undertake to become compliant.10

Adopting ELDs can have great benefts for your feet. ELDs will dramatically cut down on the amount of time spent on paperwork and inspections. Most importantly, using ELDs will enhance driver safety. With the automation and feet insight provided by ELDs, motor carriers will also see improvements in overall feet productivity and effciency.

Understanding the FMCSA’s Final Rule on ELDs | 5 Benefts of ELDs Paperwork Savings: More Drive Time, Lower Paper Costs With ELDs, less time is required for processing paperwork and inspections — meaning more time for driving and taking care of business. Automatic logging minimizes the risk of errors. Less paperwork also addsELDs up Save to cost Time savings! and Money

Drivers no longer have to fill More Drive Time out and submit paper RODS

Office staff no longer have Less Administration to process paper RODS

Lower Paper Costs Purchases of paper log books are no longer necessary

Increased Safety, Productivity and Compliance: ELDs will have a major impact on road safety. The FMCSA estimates that the ELD rule will “save 26 lives and prevent 562 injuries resulting from crashes involving large commercial motor vehicles” each year on average.11 With an ELD solution, feet managers can see a more complete and accurate picture of their feet’s activities, making management easier. ELDs increase Hours of Service (HOS) compliance, which prevents driver fatigue. Access to engine fault code information, allows feets to proactively attend to engine issues early before they turn into costly repairs or vehicle down-time.

Benefts of ELDs: Safety, Productivity & Compliance

HOS compliance prevents fatigued Reduced Fatigue drivers from getting behind the wheel

By automatically recording duty status, Automatic Recording HOS compliance will increase

Engine Fault Reporting Allows for better vehicle maintenance

1

2

3

4 Understanding the FMCSA’s Final Rule on ELDs | 6 How can Geotab help with HOS/DVIR compliance?

Geotab Drive is Geotab’s FMCSA compliant solution for Hours of Service (HOS), Driver Vehicle Inspection Reporting, and driver identifcation. The smart driver app syncs data between the Geotab GO device and a tablet to provide numerous functions, such as automatic duty status changes, violation alerts, among others, and complete end-to-end inspection workfow.

Please visit Geotab Drive on the Geotab Marketplace (www.geotab.com/marketplace) to learn more. The application can also be found on the Google Play Store and Apple iTunes store.

Geotab Drive Timeline

Planned 2013 2014 2015 In 2016 + Created Geotab + Co-drivers + Availability report + ELD compliance Drive with two + Added support for + Made “No HOS for new Rules and features: 16-hour exemption ruleset” Regulations - DVIR + Added Short-Haul + Geotab Drive for + Oil Field rulesets - HOS Rule support iOS released in + Intrastate rulesets + Added HOS + Added Beta - Florida Support for Passenger-Carrying + Canadian HOS - Texas USA Property Rule support rulesets + Windows app 60-hour / 7-day + Added 30-min + Add-Ins + Added HOS break counter + New Add-In + Released SDK for Integrations Support for HOS/DVIR USA Property 70-hour/8-day + ruleset + Messaging + Editable DVIR Parts and Defects list + Dispatch

Understanding the FMCSA’s Final Rule on ELDs | 7 Conclusion The newly released rule by the FMCSA sets out new regulations for the use of electronic logging devices (ELDs). This change will have many positive benefts for the transportation industry, including greater overall effciency, compliance and safety. It is important for motor carriers who are affected to begin evaluating and selecting an ELD solution now so they can meet the deadline for compliance and start taking advantage of the time and cost savings related to ELDs.

We want to hear from you Email [email protected] if you have any questions or comments about ELDs and the new regulations. Reach out to us on Twitter using @GEOTAB and the hashtag #ELD.

Visit our blog at www.geotab.com/blog f o r t h e l a t e s t i n s i g h t s o n t h e H O S c o m p l i a n c e a n d f e e t m a n a g e m e n t .

You can also connect with Geotab on Facebook, LinkedIn, Google+ and YouTube.

Understanding the FMCSA’s Final Rule on ELDs | 8 Appendix 1: Electronic Logging History FMCSA:FMCSA: Legislation Legislation Timeline Timeline

1988 AOBRDs served as the automated alternative to paper logs in recording HOS rules

2010 EOBRs for HOS compliance were implemented for those that were noncompliant

2012 EOBR rule of 2010 is modified after a lawsuit against FMCSA

2014 FMCSA announced a SNPRM to mandate ELDs

2015 FMCSA releases ELD mandate on December 10, 2015

1988 Motor carriers began to use automated HOS recording devices in the mid-1980s to replace paper records. The Federal Highway Administration, the agency at that time responsible for motor carrier safety regulations, published a fnal rule in 1988 that defned AOBRDs and set forth performance standards for their use: September 30, 1988.5

2010 On April 5, 2010, FMCSA published a fnal rule entitled “Electronic On-Board Recorders for Hours-of-Service Compliance” (EOBRs). Among other changes, the April 2010 fnal rule:

Prescribed new performance standards for EOBRs installed in commercial motor vehicles (CMVs) manufactured on or after June 4, 2012;

1. Provided for the issuance of remedial directives to carriers that demonstrated noncompliance with Hours of Service rules at a prescribed level during the course of compliance reviews, requiring such carriers to use EOBRs for a 2-year period;

2. Altered the Agency’s safety ftness standard to take into account issuance of a remedial directive when determining a carrier’s ftness; and

3. Modifed supporting document requirements and compliance review procedures for those carriers that voluntarily chose to use EOBRs.

The fnal rule took effect on June 4, 2010.6

Understanding the FMCSA’s Final Rule on ELDs | 9 2012 On May 14, 2012, the FMCSA formally rescinded its fnal rule requiring EOBR devices that was published on April 5, 2010, and amended September 13, 2010.

In a formal notice published in the Federal Register , the FMCSA wrote: “This action responds to a decision of the Court of Appeals for the Seventh Circuit that vacated the April 2010 fnal rule.”7

The FMCSA further noted, “The court found that FMCSA’s failure to address the issue of harassment as part of the rulemaking—a factor the agency was required to address under 49 U.S.C. 31137(a)— rendered the rulemaking arbitrary and capricious. Although the court’s opinion focused on the remedial directive for carriers that demonstrated noncompliance with hours of service rules, the court vacated the entire rule.”7

2014 On March 12, 2014, the FMCSA published a Supplemental Notice of Proposed Rulemaking (SNPRM) to mandate electronic logging devices.7

The development of the Electronic Logging Device mandate was part of the transportation reauthorization bill MAP-21 (Moving Ahead for Progress in the 21st Century) signed in 2012.7

The FMCSA published a formal proposal: Supplemental Notice of Proposed Rulemaking (SNPRM) on March 28, 2014, and asked for the public to make comments and suggestions. The comment period ended on June 26, 2014. 7

2015 The White House Offce of Management and Budget (OMB) received the rules from the Federal Motor Carrier Safety Administration on July 30 — the last step before offcial publication.7

FMCSA released the ELD mandate on December 10, 2015.

Understanding the FMCSA’s Final Rule on ELDs | 10 Appendix 2: Comparison of Functions & Features Defned By Rulings 1988 AOBRD Rule3

Integral synchronization required, but term not defned Integral Synchronization in the FMCSRs.

Recording Location Required at each change of duty status. Manual or Information automated.

Not required — “time and sequence of duty status Graph Grid Display changes.”

HOS Driver Advisory Not addressed. Messages

Device “Default” Duty Not addressed. Status

Clock Time Drift Not addressed.

Not addressed — focused on interface between AOBRD Communication Methods support systems and printers.

AOBRD and support systems must be, to the maximum Resistance to Tampering extent practicable, tamperproof.

Identifcation of Sensor Must identify sensor failures and edited data. Failures & Edited Data

Understanding the FMCSA’s Final Rule on ELDs | 11 2010 EOBR Rule3

Integral synchronization required, defned to specify Integral Synchronization signal source internal to the CMV.

Recording Location Require automated entry at each change of duty status Information and at 60-minute intervals while CMV in motion.

Not required on EOBR, digital fle to generate graph grid Graph Grid Display on enforcement offcial’s portable computer.

HOS Driver Advisory Requires notifcation at least 30 minutes before driver Messages reaches 24-hour and 7/8 day driving and on-duty limits.

Device “Default” Duty On-duty not driving when the vehicle is stationary (not Status moving and the engine is off) 5 minutes or more.

Absolute deviation from the time base coordinated to Clock Time Drift UTC shall not exceed 10 minutes at any time.

Wired: USB 2.0 implementing Mass Storage Class 08H Communication Methods for driverless operation. Wireless: IEEE 802.11g, CMRS.

Must not permit alteration or erasure of the original information collected concerning the driver’s Hours of Resistance to Tampering Service, or alteration of the source data streams used to provide that information.

The device/system must identify sensor failures and edited Identifcation of Sensor and annotated data when downloaded or reproduced in Failures & Edited Data printed form.

Understanding the FMCSA’s Final Rule on ELDs | 12 2015 ELD Mandate9

Integral synchronization interfacing with the CMV engine ECM, to automatically capture engine power status, vehicle motion Integral Synchronization status, miles driven, engine hours (CMVs older than model year 2000 exempted).

Require automated entry at:

Recording Location • each change of duty status Information • 60-minute intervals when CMV is in motion • engine-on and engine-off instances • beginning and end of personal use and yard moves

An ELD must be able to present a graph grid of driver’s daily duty Graph Grid Display status changes either on a display or on a printout.

HOS Driver Advisory HOS limits notifcation not required. “Unassigned driving times/ Messages miles” provided upon login.

On-duty not driving, when CMV has not been in-motion for 5 Device “Default” Duty consecutive minutes, and driver has not responded to an ELD Status prompt within 1 minute. No other non-driver-initiated status change is allowed.

ELD time must be synchronized to UTC, absolute deviation Clock Time Drift must not exceed 10 minutes at any point in time.

1. Telematics: As a minimum, the ELD must transfer data via both wireless Web services and wireless email. Communication Methods 2. “Local Transfer”: As a minimum, the ELD must transfer data via both USB 2.0 and Bluetooth. Both types of ELDs must be capable of displaying a standardized ELD data set to authorized safety offcials via display or printout.

ELD must not permit alteration or erasure of the original information collected concerning the driver’s ELD records or alteration of the Resistance to Tampering source data streams used to provide that information. ELD must support data integrity check functions.

ELD must have the capability to monitor its compliance Identifcation of Sensor (engine connectivity, timing, positioning, etc.) for detectable Failures & Edited Data malfunctions and data inconsistencies. ELD must record these occurrences.

Understanding the FMCSA’s Final Rule on ELDs | 13 References 1. NARA, “Electronic Logging Devices and Hours of Service Supporting Documents (MAP-21),” Federal Register, Sept 2015, http://federalregister.gov/r/2126-AB20.

2. FMCSA, Part 390 - FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL. § 390.5: Defnitions, https://www.fmcsa.dot.gov/regulations/title49/section/390.5.

3. FMCSA, “Electronic Logging Devices and Hours of Services Supporting Documents; Proposed Rule.” Federal Register, 79[60]. pp. 17667, Mar. 28, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-03-28/pdf/2014-05827.pdf.

4. FMCSA, “Electronic Logging Devices and Hours of Service Support Documents; Final Rule,” Dec. 16, 2015, https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/fles/docs/FMCSA-ELD-Final-Rule_12-10-2015.pdf.

5. FMCSA, “Hours of Service for Drivers: Regulatory Guidance Concerning the Editing of Automatic On- Board Recording Device Information,” Apr. 2012, http://www.regulations.gov/#!documentDetail;D=FMCSA-2013-0161-0039.

6. FMCSA, “Electronic Logging Devices of Service Supporting Documents: FMCSA-2010-0167,” May 2014, http://www.regulations.gov/#!documentDetail;D=FMCSA-2010-0167-0485.

7. “Electronic On-Board Recorders for Hours-of-Service Compliance; Removal of Final Rule Vacated by Court,” Federal Register, May 2012, https://federalregister.gov/a/2012-11437.

8. FMCSA, “Implementation Timeline,” Dec. 16, 2015, https://www.fmcsa.dot.gov/hours-service/elds/implementation-timeline.

9. FMCSA, “Electronic Logging Devices and Hours of Service Support Documents; Final Rule,” Dec. 16, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-12-16/pdf/2015-31336.pdf.

10. FMCSA, “ELD Checklist for Carriers,” Dec. 16, 2015, https://www.fmcsa.dot.gov/hours-service/elds/eld-checklist-carriers.

11. FMCSA, “Electronic Logging Devices to be Required Across Commercial Truck and Bus Industries,” Dec. 10, 2015, https://www.fmcsa.dot.gov/newsroom/electronic-logging-devices-be-required- across-commercial-truck-and-bus-industries.

Understanding the FMCSA’s Final Rule on ELDs | 14 About Geotab Geotab is a leading global provider of advanced, end-to-end telematics technology that helps businesses manage vehicles by extracting accurate, actionable intelligence from real-time and historical trips data. Collecting over 600 million data points daily, Geotab makes benchmarking data accessible to improve productivity, optimize feets, enhance safety and achieve stronger regulatory compliance. www.geotab.com

This document refects Geotab’s understanding and interpretation of the ELD legislation at the time of writing. It is not legal advice and should not be relied upon as such. Planned functionality for Geotab Drive refects Geotab’s intentions at the time of writing, actual implemented functionality may differ.

©2016 Geotab, Inc. All rights reserved.

Understanding the FMCSA’s Final Rule on ELDs | 15